Qualifying Free Zone Person (QFZP) Assessment in UAE

Maximize Your Tax Benefits with Expert QFZP Assessment Service in UAE

Qualifying Free Zone Person (QFZP) Assessment

Simplify Compliance, Maximize Savings

HAS Global Tax Consultants specializes in Qualifying Free Zone Person (QFZP) Assessment in UAE, helping businesses in Dubai and across the UAE Free Zones secure and maintain their QFZP status. Our expert team guides you through the complex UAE Corporate Tax Law, ensuring you benefit from the 0% corporate tax rate on qualifying income.

What is a Qualifying Free Zone Person (QFZP)?

A QFZP is a company registered in a UAE Free Zone that meets specific legal and operational criteria, allowing it to enjoy a 0% corporate tax rate on qualifying income. Non-qualifying income is taxed at the standard 9% rate.

Key Conditions for QFZP Status

To qualify as a QFZP and access the 0% corporate tax rate, your business must:

Be incorporated or registered in a UAE Free Zone.
Maintain substantial economic presence (adequate assets, staff, and operations) within the Free Zone.
Earn qualifying income from approved activities, as defined by UAE tax law.
Not elect to be taxed under the standard UAE corporate tax regime.
Comply with transfer pricing rules and maintain proper documentation.
Keep audited financial statements.
Ensure non-qualifying revenue does not exceed AED 5 million or 5% of total revenue (whichever is lower).

Failing to meet any of these criteria can result in losing QFZP status and facing the standard 9% corporate tax for up to five years.

What Counts as Qualifying Income?

Only qualifying income is taxed at 0%. In general:

Other Free Zone Persons: Income from transactions with another Free Zone Person qualifies, except income from excluded activities.
Qualifying activities: Income from a qualifying activity can qualify even when the customer is outside the Free Zone. Examples include manufacturing or processing goods, trading qualifying commodities, holding shares, fund and wealth management, shipping, reinsurance, headquarter and treasury services for related parties, logistics, and distributing goods in or from a Designated Zone.
Excluded activities: Banking, insurance, most finance and leasing, and most real estate and certain intellectual property income do not qualify.
Mainland and individual customers: Income from mainland companies is non-qualifying unless it comes from a qualifying activity, and income from individuals is generally non-qualifying.

The right classification depends on your exact activity and who you trade with. That is what our assessment works out for you.

New Requirement for Designated Zone Distributors (FTA Decision No. 6 of 2026)

If your QFZP status relies on distributing goods or materials in or from a Designated Zone, you must now obtain an Agreed-Upon Procedures (AUP) report from an independent auditor, prepared under ISRS 4400, for tax periods commencing on or after 1 January 2026. Read our full guide: New AUP Reporting Requirement for QFZPs Distributing Goods from a Designated Zone. A QFZP assessment tells you whether this applies to you.

Why Qualifying Free Zone Person (QFZP) Assessment Matters

Unlock 0% Tax Rate: Ensure your business structure and operations meet all requirements for maximum tax savings.
Stay Compliant: Avoid penalties and the risk of losing QFZP benefits by proactively managing your compliance.
Strategic Planning: Identify qualifying and non-qualifying income streams for optimal tax planning.
Business Confidence: Maintain strong financial transparency and business reputation.
Expert Guidance: Provide clients with professional advice on UAE tax and regulatory requirements.

Why Choose HAS Global Tax Consultants For Qualifying Free Zone Person (QFZP) Assessment?

Local Expertise: Deep knowledge of UAE Free Zone regulations and corporate tax law.
Comprehensive Service: From initial assessment to ongoing compliance, we support your QFZP journey at every step.
Proactive Approach: We help you anticipate regulatory changes and maintain your tax-advantaged status.

Qualifying Free Zone Person (QFZP) Assessment FAQs

What is a Qualifying Free Zone Person (QFZP) under UAE Corporate Tax Law?

A Qualifying Free Zone Person (QFZP) is a Free Zone business that meets specific conditions under UAE Corporate Tax Law to benefit from a 0% corporate tax rate on qualifying income. HAS Global Tax Consultants helps businesses understand these conditions, including substance requirements, qualifying income criteria, and compliance obligations.

Why is a QFZP assessment important for my Free Zone business?

A QFZP assessment ensures your business meets all legal requirements to retain its qualifying status and enjoy tax advantages. Without it, you risk losing the 0% corporate tax benefit. HAS Global Tax Consultants provides thorough QFZP assessments to safeguard your tax position and compliance.

How can HAS Global Tax Consultants help with QFZP assessment?

HAS Global Tax Consultants conducts a detailed review of your operations, income sources, and compliance processes to determine QFZP eligibility. We guide you through meeting all conditions, preparing required documentation, and maintaining your status for maximum tax savings.

Is QFZP status automatic for Free Zone companies?

No. A Free Zone company must meet every condition in each tax period: adequate substance, qualifying income, the de minimis limit, audited financial statements and transfer pricing compliance. If it fails any one, it loses QFZP status.

What happens if my company loses QFZP status?

The company is taxed at the standard rates on all its income, instead of the 0% rate on qualifying income. This applies for the tax period in which it fails and for the following four tax periods.

What is the de minimis requirement for a QFZP?

Your non-qualifying revenue must not exceed the lower of AED 5 million and 5% of your total revenue in the tax period.

Does a QFZP still need to register and file a corporate tax return?

Yes. Qualifying Free Zone Persons must register for corporate tax and file an annual return, even when most of their income is taxed at 0%.